Chapter 2: Organizational Structure of Manufacturing
Basic manufacturing activities fall into two main categories: material processing and management
Material Processing
-Changes raw materials into standard stock from which products are made
-Activities are either primary or secondary
-Primary – changes raw materials into usable standard materials
-Typical standard materials – sheet steel, plywood, lumber, aluminum tubing and rods, sheet cork, plastic films, and refined clay
-Secondary processes changes standard stock into products, involves:
-casting, forming and separating materials to create a part of proper size and shape
-Conditioning materials to produce the desired physical property such as hardness or ductility
-Assembling parts into assemblies and finally into products
-Providing products with protective and/or appearance coating through finishing activities
Management
-Sum of practices which see that the enterprise operates efficiently
-Carried out by managers, this function guides several important areas of activity
-Activities move an idea for a product through a series of steps
-Idea eventually becomes an actual product which can be exchanged in the marketplace for money
-Major areas of activity, which transform an idea into a product and then sell it, are:
-Research and Development
-Managed activity which discovers, develops, and specifies the characteristics of new or improved products and processes
-Production. This managed activity engineers the production facility, and produces scheduled products to stated quality standards
-Marketing. This managed activity identifies markets for products; then promotes, sells, and distributes the manufactured good.
-Two other areas of activity support these three product-centered activity areas:
-Industrial Relations – the managed activity which develops positive relations between management, its workers and its publics. This activity includes employee relations (personnel), union (labor) relations, and public relations programs
-Financial Affairs – the managed activity which monitors and controls the company’s monetary actions
-Functions or tasks of management are applied within each of the five areas
-Goals and courses of action are planned
-Activities are organized into personnel structures and jobs are established
-Employees are directed and motivated to complete their jobs
-Results of management activity are constantly monitored to control the operation
Major activity in every manufacturing enterprise is production
-Actual making of product takes place within managed production activity
-Production area responsible for four major activities:
-Manufacturing engineering – designing and engineering all production facilities and equipment needed to produce approved products
-Production Planning and Control – preparing, issuing, and monitoring schedules for the use of human, capital, and material resources within the production area
-Manufacturing – producing approved products by changing the shape, composition, or combination of material, parts, or assemblies
-Quality Control – developing and administering motivational and inspection programs to insure products meet stated standards
-All of these activities designed to change product idea, as represented by engineering drawings, bills of material, and specification sheets, into an actual product
-Change ideas into reality and words and lines into salable three-dimensional objects
Types of Manufacturing
-Production of products is carried out by one of three major types of manufacture:
-Custom manufacture
-Intermittent manufacture
-Continuous manufacture
Custom Manufacture
-Involves producing of limited number of products from a customer’s order
-Products usually built to a customer’s order
-Products usually built to a customer’s design and specifications
-Requires highly skilled labor and general-purpose machines
-Production rate is slow b/c drawings and specifications must be constantly read and applied
-Each operation requires careful setup, performance, and quality checks
--Expensive way to produce products
-Used only when cost is not a major concern
-Used to produce tooling (dies, patterns, and fixtures), special equipment, product prototypes, and models
Intermittent manufacture
-Job-lot manufacture is used to produce quantities of products that are too small to be continuously manufactured
-Typically, intermittent manufacturing plants produce a number of different products (parts, assemblies, or complete products) using the same equipment
-Production may be for company’s use or for outside customers
-Some intermittent type operations produce parts for use by other plants owned by same company
-Other intermittent manufacturing plants, called job-shops, bid for production jobs from a number of customers
-Materials usually move through plant in lots (trays or baskets of parts).
-Order of operations determined for each part
-Lot then moved from machine to machine
-Each step, machine set up as job dictates
-Schedule operation performed on all pieces in lot before they are moved to next work station
-Entire lot moves through plant as a single unit
-Requires skilled workers and general-purpose machines
-More economical to produce parts b/c each machine setup will process a number of parts before being changed
-In addition, workers are apt to be doing the same type of work all day, such as drilling
-Therefore, become more productive
-Aloes use less of their work time reading and interpreting drawings
-Some intermittent production runs are larger than job lots
-Often a need to run a part or assembly for several days b/c equipment is changed to produce a different product
-Company may produce enough products to fulfill its needs for a number of weeks or months during a several day run
-This type of intermittent production provides some of the benefits of continuous production
Continuous Manufacture
-Produces same product using same equipment over long period of time
-Quite often the equipment used is special-purpose type machines
-Machines designed and built to produce one specific product or a group of closely related products
-Generally, few workers are required and they may be semiskilled
-Typical on-the-line jobs require loading materials and parts into machines, monitoring (observing) the machine during its process cycle and removing finished parts
-Produces products at a lower per unit cost than custom or intermittent systems
-Product quality is generally higher
-B/c of repetitive operations, continuous manufacture lends itself to automatic controls, use of transfer (automatic part-moving) machines, replacing workers with robots, and other labor-saving equipment
-This method of manufacture appropriate for production and assembly of products needed in large numbers
-Typical of such products are fasteners (nuts, bolts, and nails), electric motors, automotive parts, and television sets
-Process type industries use continuous manufacture
-Industries most often produce standard stock
-Plywood, particleboard, and hardboard are typically manufactured in specially designed plants
-Most chemical and petrochemical plants are continuous process operations
-Continuous manufacture will generally produce greatest quantity of product at lowest per unit cost and with highest quality
Chapter 2: Study Questions
List and describe the two main categories of manufacturing activity
Material Processing and Management (p. 14)
Material Processing (p. 14)
· Directly involved with changing the form of materials
· Changes raw materials into standard stock from which products are made
· Either primary or secondary processes.
Management (p. 14, 15)
· Directs the material processing activities
· Concerned with the efficient and effective operation of the manufacturing enterprise
· Sum of the practices which see that the enterprise operates efficiently
List and describe four major functions of management
Management plans, organizes, directs, and controls company activities. (p. 15, 16)
· Planning – Goals and course of action are planned
· Organizing – Activities are organized into personnel structures
· Directing – Employees are directed and motivate to complete their jobs
· Controlling – Results of the management activity are constantly monitored to control the operation
List and describe the three major types of manufacture
Custom manufacture, intermittent manufacture, and continuous manufacture (p. 17)
Custom manufacture
· Involves producing of a limited number of products from a customer’s order
· Usually built to a customer’s design and specification
· Expensive way to produce products
Intermittent manufacture
· Produces quantities of products that are too small to be continuously manufactured
· Product may be for company or outside customers
· Materials usually move through the plant in lots
· Requires skilled workers and general-purpose machines
· Some larger than job lots
Continuous manufacture
· Produces the same product using the same equipment over a long period of time
· Few workers are required and they may be semiskilled
· Produces products at a lower per unit custom compared to custom or intermittent systems
· Appropriate for production and assembly of products needed in large numbers
· Used by process type industries
The group of techniques which combines two or more parts into a product is called _________.
Production (p. 20)
The major managed areas of activity in an enterprise are (select the correct answers):
a. Financial Affairs
b. Industrial Relations
c. Marketing
d. Production
e. Research and development (p. 15)
Product manufactured to customer’s order is more likely to be produced by (custom, intermittent) manufacture
Custom manufacture (p. 17)
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